A disaster recovery plan is a detailed plan that is designed to outline how a business will recover from an unexpected event that causes costly losses. By developing an effective plan, businesses can restore the business’s ability to operate by recovering from the initial loss and resuming normal operations. While a business owner hopes that a disaster or catastrophic loss never happens to them, everyone should have a plan in force in case it does. US Department of Labor studies show that virtually 40 percent of all businesses who experience a disaster never re-open. Do not become a part of this statistic and understand the importance of a disaster recovery plan in business environments.
Crises and disasters that can affect your business operations can include theft, fire, floods, hurricanes, tornadoes, earthquakes, power failure, Internet failure, hazardous material leaks and spills, security breaches, terrorist attacks, and computer hacker attacks. While the severity of each of these risks will vary, each exposure can close your business doors for good if you do not have an effective and comprehensive recovery and resumption plan in force. While not all of these risks can affect your business, you must plan for each risk you are vulnerable to.
While developing a recovery plan make take a lot of time and effort, once you have developed a successful plan you will ensure the continuity of leadership throughout the organization by relocating or repairing the damage that has been done in a reasonable time frame. You should outline realistic time frames on when facilities, records, assets, records and computer systems should be restored so that you know you are on track for business resumption. While some of the common disasters that occur today are preventable, it is important to develop a plan for every uncertainty.
The three primary goals of all disaster recovery plans that should include reducing the potential for injuries and physical damage to properties and records; stabilizing the effects of the disaster by beginning recovery efforts; and implementing the right procedures depending on the type of disaster that has occurred. While business insurance will pay for damages and loss to the corporation, re-opening your business and resuming operations requires planning. Assign individuals and committees responsible for implementing and following the recovery plan. Also, it is important to be sure that your business is not permanently closed because you failed to plan ahead of time for unexpected losses.